July 25, 1919 



HARDWOOD RECORD 



39 



Wholesalers Largest Buyers in Memphis 



Wholesalers in the United States are furnishing twenty-seven per 

 cent of the orders for hardwood lumber in the Memphis territory, 

 thus leading all other buyers in this country, according to the mar- 

 ket report submitted to the open competition plan meeting of the 

 American Hardwood Manufacturers' Association, held at the Hotel 

 Gayoso, July 11. 



The largest consuming buyers are the furniture makers, who are 

 taking twenty-five per cent of all the hardwood lumber now being 

 used in this country. The other interests, together with the per- 

 centage they are taking, are given herewith: Automobile indus- 

 try, nine per cent; flooring, six per cent; box manufacturers, six 

 ]ier cent; interior trim, five per cent; vehicle, three per cent; retail 

 yards, four per cent, and car manufacturers, two per cent. Whole- 

 salers are leading in supplying orders for e-xport, too, their pur- 

 chasing amounting to thirteen per cent. 



The best demand, according to the same report, is for No. 1 com- 

 mon and better oak and gum in both plain and quarter sawn. There 

 are suificient orders on hand now to require thirty-five days in the 

 filling, provided all of them were ready for immediate shipment. 

 This compares with forty days that would have been needed for 

 the same purpose a month ago. Production was estimated at sixty- 

 five per cent of normal for the month of June. The estimated pro- 

 duction for July and August is placed at eighty-seven per cent of 

 an average for these months. Production for the month of May 

 was one per cent higher than for the month of June, thus quite 

 reversing the normal order. This was due to the tremendously 

 Iieavy rains that prevented logging during the month of May, but 

 which did not interfere with cutting up the logs that were on the 

 yards or in ponds. Stocks in this territory are fifty-six per cent of 

 normal. 



Discussion of car shortage developed the fact that this is already 

 beginning to loom large, and that it promises to be a serious factor 

 in both the manufacture and distribution of hardwood lumber. Box 

 ears are particularly scarce and many are being moved to the 

 wheat fields of the West and Northwest to help in handling the 

 tremendous production of that grain. It is anticipated by the lum- 

 Itermen that this drain on the car supply of the South will result 

 in a heavy shortage of box cars and that, as soon as the wheat 

 movement has been taken care of, there will be a large number of 

 cars required for the handling of cotton and sugar shipments. 

 Lumber manufacturers are doing what they can to help the situa- 

 tion and they are agreed, as was disclosed at this meeting, that 

 the greatest assistance they can give to the railroads and to them- 

 selves is through maximum loading of all equipment furnished 

 them, or, as those discussing the subject expressed it, "making two 

 cars do the work heretofore done by three." 



It was likewise decided to secure allotment of at least a portion 

 of the 1400 idle new cars on spurs, sidings and terminals at Mem- 

 phis and in the Memphis territory to southern roads as a measure 

 calculated to furnish partial relief. Since the meeting, however, 

 all of these cars have been ordered delivered to the Atchison, 

 Topeka & Santa Fe to assist in handling wheat and other grains. 

 It is regarded as possible, however, that ordering these cars put into 

 immediate use will have the effect of stopping, at least to some 

 degree, the heavy withdrawal of cars in service on southern lines. 



It was agreed by all who discussed the labor situation that the 

 supply is getting lower and that there is a notable decrease in the 

 efficiency of that available. It was decided that lumber manu- 

 facturers should use their best efforts to keep laboring men at home 

 on the theory that, while they do not draw as high wages as in the 

 wheat fields of the West, they are assured much more permanent 

 employment at the mills and in the woods than they can hope to 

 secure by going to assist in saving the wheat crop. 



Owing to the unusual market conditions and owing to the fact 



that the wliole situation is fraught with unusual danger, it was 

 decided that the Memphis section of the association would hold 

 meetings in Memphis on Friday of each week until further notice. 

 At each of these meetings market reports, especially prepared for 

 Memphis territory lumbermen, will be presented by F. E. Gadd, 

 manager of statistics. 



Enthusiastic Open Price Meetings 



The Jackson territory owing to its closeness to the ports, is 

 getting more export demand than any other territory in the South, 

 according to F. B. Gadd, manager of statistics of the American 

 Hardwood Manufacturers' Association, who attended the monthly 

 open competition plan meeting at Jackson, Miss., Friday, July 18. 



It developed during the discussion that there is an excellent ex- 

 port inquiry in that territory at the moment, though some slight fear 

 is entertained that the movement of hardwood lumber to the 

 United Kingdom and other foreign countries may be retarded 

 somewhat by the seamen's strike which is tying up so many vessels 

 in American ports. 



Manufacturers in that territory, it further transpired, are un- 

 usually well sold up and dry stocks are very light. Production, it 

 developed, is not increasing as rapidly as was anticipated, partly 

 because of weather conditions, partly because of labor shortage 

 and partly because of scarcity of cars. This is the time of year 

 when there ought to be an accumulation of both logs and lumber 

 but neither is being accumulated at this time and it was the sense 

 of the meeting that there would be continued shortage of produc- 

 tion and stocks for an indefinite period. The car shortage is re- 

 garded by those who participated as a disturbing factor because 

 it is already beginning, even at this early date, to be somewhat 

 serious. 



F. E. Gadd, manager of statistics, who attended this meeting, 

 left Memphis, Monday, to attend the meeting at Little Bock on 

 Tuesday. 



More than sixty lumbermen attended the weekly open competi- 

 tion plan meeting of the American Hardwood Manufacturers' As- 

 sociation for the Memphis section held at the Hotel Gayoso, Fri- 

 day, July 18. Conditions in this territory were described as prac- 

 tically the same as in the Jackson territory as developed at the 

 meeting at that point on the same day. There is very little in- 

 crease in production compared with the recent average, stocks are 

 much broken, logs are scarce and prices are very firm, with an 

 upward tendency. 



There was considerable discussion of the strike of seamen which 

 is tying up the movement of hardwood lumber and forest products 

 overseas and the fear was expressed that this might develop into a 

 handicap of considerable importance if steps are not taken im- 

 mediately to settle it. Already, it was disclosed, embargoes against 

 shipments to some ports have been issued by the railroads to pre- 

 vent undue congestion of facilities. 



The low rate of exchange was also discussed as another possible 

 handicap, especially exchange on England. The purchasing power 

 of a pound sterling is lower today than it has been for years and 

 this reduces the purchasing ability of English buyers of hardwood 

 lumber and forest products as well as cotton and other raw ma- 

 terials. It was pointed out, however, that steps are being taken 

 to stabilize exchange and the hope is expressed that these will be 

 successful. 



The government is seeking bids on wooden lockers and wooden 

 filing cases in lots of 1000. It is also going to buy a number of 

 wooden beds based on new type samples submitted by the War 

 Service Committee of the furniture industries. One of the latest 

 of these has rock elm head and foot boards and everything elsa 

 metal. Others have the side rails and spring frames of wood. 



